New Jersey's version of the Clean Air Interstate Rule
was adopted in 2007, in compliance with Federal regulations, to be
effective on January 1, 2009. Applying to all electric generating units
with a rated output in excess of 25 MW, it established both an Ozone
Season program with a cap of 6,654 tons of NOX, and a
parallel Annual program with a cap of 12,670 tons. In 2008, CAIR was
first vacated in entirety by the U.S. Court of Appeals for the District
of Columbia Circuit in July, which then in December reversed its
vacatur citing that the CAIR rule as previously written would remain in
place until such time as the USEPA revises the rule, as per the
instructions of the Court’s order in July.

The CAIR program came to an end on December 31, 2014.

NOx Budget Programs

These rules applied to all fossil fuel fired
indirect heat exchangers with a maximum rated heat input capacity of at
least 250 MMBtu per hour; and all fossil fuel fired electric generating
units with a rated output of at least 15 MW.

The Ozone Transport Commission (OTC) was
established under the Clean Air Act Amendments of 1990 to to coordinate
the regional development of control plans for ground-level ozone in the
Northeast and Mid-Atlantic States. A three phase program was
established starting with the implementation of "reasonably available
control technology" (RACT) for many existing pollution sources in
certain nonattainment areas and throughout the OTR. Phase II began with
a 1994 Memorandum of Understanding between the states of the Ozone
Transport Region to create a Cap and
Trade program within the region which would become the NOx
Budget Program.

New Jersey adopted its NOx Budget Program, N.J.A.C. 7:27-31,
in 1998, which was effective for the May through September ozone season
starting in 1999. A base emission budget of 17,340 tons of NOx
was established, which was an approximately 65% reduction from 1990
emissions. Phase III, known as NOx
SIP Call began in 2003 with a reduction of the base emission budget
to 8,200 tons. Phase III continued through the ozone season of 2008, at
which point it was superceded by the Clean Air Interstate Rule (CAIR).

New Jersey's NOx Allocations:

Information on allocations and emissions under all programs can be obtained from the USEPA’s Air Markets Program Data tool at: